ECONOMICS

Detailed explanation-1: -The first-in-first-out (FIFO) method keeps beginning inventory costs separate from current period costs and assumes that beginning inventory units are completed and transferred out before the units started during the current period are completed and transferred out.

Detailed explanation-2: -The first-in, first-out process-costing method assumes that units in beginning inventory are completed during the current accounting period. Process costing FIFO is usually applied to both the units entering a department and the units leaving a department.

Detailed explanation-3: -When using the weighted average method, you divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. In this calculation, the cost of goods available for sale is the sum of beginning inventory and net purchases.

Detailed explanation-4: -o It assumes that the units in beginning work in process inventory and the units started into production during the period are equally likely to be completed during the period. o All units completed during the current period are assigned costs based on the weighted average cost per unit.